Warning: Companies going bankrupt and reducing Annual Rentals

It is unlikely that you’ll get any of your annual rentals paid from these companies. Some companies like Sphere are arbitrarily reducing annual compensation amounts.

Do not sign any rental reductions. Many of these companies state that reclamation is near or that they’re just reducing rentals until economic conditions improve. It is too late for many of these companies and they’ll go bankrupt. You’ll have to apply to the SRB to get your annual rentals from the Minister of Finance. If you’ve accepted rental reductions, that is all you’ll get.

Neo Resources (100 wells in the Taber area) is now defunct. Spyglass just went into receivership (3500 wells), Sphere is asking for rental reductions. There are many more.

Do not accept any rental reductions and if you’re not being paid your annual compensation, let us know. actionsurfacerights.ca